In a model of overlapping generations with production, money, and an endogenous labor supply, general conditions are given for the existence of two different types of cyclical equilibria. The conditions are given in terms of the elasticities of demand for savings and for capital with respect to the interest rate and of the capital-consumption ratio at the golden rule steady state. Examples using CES technologies are also studied.
ASJC Scopus subject areas
- Economics and Econometrics